The American Automobile Association (AAA) released its 2011 Your Driving Costs research which indicated that the price of auto insurance quotes on a sedan is down 6.1% but driving costs overall increased by about 3.4% since last year.
The AAA report shows that the average annual auto insurance premium for a sedan is $968 which is down $63 from 2010 according to the article “AAA: Insurance Costs Down, Overall Driving Costs Up in 2011″ by Matthew Morisset on the Online Auto Insurance News Team. This decline cancels out the auto insurance increase from 2010. The 2010 report showed that policy costs had gone up by 5.7% from 2009.
The insurance costs were based on a 47 year old man with a good driving record and drives between 3-10 miles each day. The coverage for this sample policy included adequate coverage of $100,000/$300,000 with a $500 deductible for collision and a $100 deductible for comprehensive coverage. This gives an average look of what a common policy price looks like for an individual but would obviously vary if the coverage, mileage or age were different.
The average yearly costs to own and operate a sedan is $8776 based on 15,000 miles per year. This number actually increased from 2011 most likely due to the rise in gas prices, the costs of tires and the increase in depreciation rates. A variety of cost categories were looked at including auto insurance, fees for licensing, taxes, finance charges, depreciation, gas, maintenance and tires.